BEN & JERRY'S Homemade, Inc. Release
30 Community Dr., So. Burlington, VT 05403-6828 Ph..: 802-651-9600

For Release: October 20, 1997
Contact: Frances G. Rathke, Chief Financial Officer
802-651-9600 ext: 7500

BEN & JERRY'S ANNOUNCES THIRD QUARTER RESULTS
AND ENTRY INTO JAPAN AND ASIA IN 1998

South Burlington, VT -- Ben & Jerry's Homemade, Inc. (NASDAQ - BJICA) achieved record sales and increased earnings for the third quarter ended September 27, 1997. In addition, the Company said it has in place agreements in principle or other arrangements for entry into Japan and other international markets as well as for development and marketing a line of Newman's Own Premium Plus ice cream.

Third Quarter Results:

Consolidated net sales for the quarter ended September 27, 1997 increased 8% to $49,956,000 as compared to $46,143,000 for the same period in 1996. Net income for the quarter was $2,528,000, a 39% increase over the $1,820,000 net income recorded in the prior year. Net income per common share was $.34, a 36% improvement from the $.25 per common share recorded in the third quarter of 1996.

Consolidated net sales for the 39 weeks ended September 27, 1997 increased by 3.6% to $136,805,000 from $132,075,000 for the same period last year. Net income was $3,210,000 for the first nine months of 1997 as compared to $5,127,000 for the same period in 1996. Net income per common share for the first nine months of 1997 was $.43 as compared to $.71 for the first nine months of 1996.

Net profitability for the third quarter increased over the prior year quarter due primarily to a solid increase in sales and significant improvement in gross profit margin. Gross profit for the quarter increased by $4,764,000 and the Company's gross margin increased to 38.3% as compared to 1996's third quarter gross margin of 31.1%. Improvements in gross margin are the result of continued improvement in operating efficiencies, decreases in commodity costs and increases in selling prices. Selling, general and administrative expenses increased as a percentage of sales from 24.5% to 29.6% reflecting a national radio advertising campaign and increased trade promotions to support the Company's brand domestically and in Europe.

International Development:

The Company also announced that it has signed a memorandum of understanding with one of the largest food retailers in Japan for sale through the retailer's stores in Japan of Ben & Jerry's products manufactured in Vermont in special sizes. The parties plan a test market and a product launch in 1998. The arrangement is subject to the completion of a definitive agreement. The Company also announced it reached agreement on the key points of a relationship with a significant brand developer in Japan. This arrangement, which is subject to execution of a mutually satisfactory agreement, provides for the sale and distribution of Ben & Jerry's products in the Japanese market in conjunction with the sales under the first agreement referred to above.

"Japan is the second largest super premium ice cream market in the world. " said Jack Beuttell, Director of International Marketing and Sales, Ben & Jerry's Homemade, Inc. "We are extremely excited about this market entry and our business partners. This alliance, which combines three innovative branded food and retailing companies, will provide the Japanese consumer a new and unique super premium ice cream and frozen dessert experience. A key component of our development in Japan was finding the right business partners who understand the marketplace and share the same passion for quality and social responsibility.

The Company also announced that it had signed a letter of intent with Royal Sporting House PTE, Ltd., a significant developer and retailer headquartered in Singapore, for a license to distribute and sell in all channels of distribution, including licensed Ben & Jerry's scoop shops, products purchased from Ben & Jerry's. The agreement covers Singapore, Malaysia, Indonesia and the United Arab Emirates. The parties intend that the arrangement will be the subject of one or more definitive license agreements with anticipated scoop shops opening in 1998.

Newman's Own:

The Company further announced it reached an agreement in principle on the key elements for the development and marketing of a line of Premium Plus ice cream products under the brand name, "Newman's Own" which will be licensed to Ben & Jerry's under a mutually satisfactory long-term agreement to be signed by the parties. Newman's Own will be manufactured and distributed by Ben & Jerry's. Ben Cohen, Chairperson of Ben & Jerry's, said "We are very excited to form this partnership with Paul Newman's company and believe it will offer consumers a unique product line with the fun, spirit and quality in keeping with the variety of food offerings under the Newman's Own brand. We are happy with this association since Paul Newman gives all of his profits from this and his other food business to charities."

Management:

Ben & Jerry's also announced today the hiring of Larry Benders as Chief Marketing Officer of the Company effective today. Larry Benders was most recently Vice President of International Marketing at Coors Brewing Company and has previously held senior marketing and management positions at Nabisco Foods Group and Johnson & Johnson.

Also, the Company announced the appointment of McKinney & Silver, a Raleigh, North Carolina-based agency, as its advertising agency of record for the next year.

Ben & Jerry's produces super premium ice cream, ice cream novelties, lowfat ice cream, lowfat and non fat yogurt, and sorbet using Vermont dairy products, Vermont spring water, and high quality natural ingredients. Ben & Jerry's products are distributed nationwide and in selected foreign countries in supermarkets, grocery stores, convenience stores, scoop shops, restaurants and other venues.


Ben & Jerry's Homemade, Inc.
Condensed Statement of Operations
(In thousands except per share data)
(unaudited)

Thirteen weeks ended Thirty-nine weeks ended
Sept 27, 1997 Sept 28, 1996 Sept 27, 1997 Sept 28, 1996
Net Sales$49,956$46,143$136,805$132,075
Gross profit19,11814,35448,27142,859
Selling, general &
administrative expense		14,79511,29142,06934,899
Operating income4,3233,0636,2027,960
Other income (expense)(250)(128)(1,029)310
Income before income taxes4,0732,9355,1738,270
Net income2,5281,8203,2105,127
Net income per common share$0.34$0.25$0.43$0.71
Weighted average common
and common equivalent
shares outstanding		7,3467,2217,3237,217

(End)

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